Okay this may be a long post.. but it is amazing what persistence can accomplish... When I first got into real estate investing I'd say about 4 years ago is when I joined bigger pockets and I would continuously read the success stories and wonder how these things were accumulating for these other investors and how they were able to scale. I will give a brief run down of my story and why I am posting in the success stories although there is so much farther to go.
I graduated college got a 9-5 at Fedex and thought I was doing well at life like I had been taught. I was going to go get a masters degree when a guy at work gave me a book called 'Rich Dad Poor Dad'. He told me I should consider reading the book before going back to school. The book blew my mind! It single handily changed my life. I had always wondered what separated the rich and poor and after reading this book I had an extreme epiphany. I immediately wanted to start investing in mulitfamily real estate. I figured if I continued to work my job I could save 20k year and buy one property a year then year 2 buy two properties and have my portfolio snowball that way. After a 6-8 months of trying and failing, reading as many books as I could get my greasy hands on, and constantly networking and looking for properties I finally found a triplex I bought in August 2015.
My mother was dating a guy who I ABSOLUTELY HATED!! After a while I finally became cordial with him although we never spoke. At this point I had became relatively knowledgeable about real estate after constantly reading (at least 20 pages a day.. still to this day) and taking action, failing, and repeating. She kept bugging me to show him what I was doing with real estate that he was interested in investing. For months she would ask me to show him some properties or deals. One day, after constant harassment from my mom I finally brought over a deal for him. He is from Lithuania and did not understand investing what so ever so I had to explain every detail of the deal to him. After I finished explaining the deal he asked me, "what if I don't want mortgage I just buy cash". I was like WOAH!? I'm thinking in my head YOU HAVE 130K cash!? I immediately reached back to my real estate reading and explained the power of leverage to him.
At this point it had been a few months since my first deal and I was just manifesting. Out in the field meeting people, analyzing deals, speaking to people about real estate and my goals. I had just gotten close with these sellers who I tried to buy a 4 unit off of previously when I first started and I ran back into them at an auction. They had told me they were selling a 12 unit for 500k. I had brought an investor to the property with no avail. Let's fast forward to two weeks later when I brought my moms boyfriend the duplex deal. After, explaining leverage to him I said I have a deal for you to check out. It was the 12 unit for 500k I had been trying so hard to get.
I compared the numbers side by side with him. The 130k duplex paid in cash would only produce 18k/year max. 100k down on the 500k property would produce around 30k/year net. The only problem I didn't have enough money to go in half with him. I brought him a proposal that stated we would be partners in the deal and I would do everything he could imagine in regards to management in the property and all he had to do was put his money up and collect a check. I explained to him I only had 20k. He said he could cover the 80k. When we were preparing the LLC I asked about the ownership and said its "51(him)/49(me)" and he said in his Russian accent "60/40" I said okay in a heart beat. I would have done anything to get that property. We closed on the 12 unit in August of 2016.
After about 15 months I found another 9 unit in which the numbers made sense. We purchased the property for 330k with 66k down 20k from me 46k from him. This purchase was in November 2017.
Recently, I really tried to level up and buy 71 units for 2.4 million. Two different properties from the same owner 41 unit and a 29 unit. I had convinced my partner to "burn the ship" and put the last of his 500k down on this property because we had some outs and it was a cash cow. He would have had 100k cash after and owns his house in full so he felt okay with it. We actually ended up needing 668k for our downpayment after closing cost etc. I paid a business broker who only does deals over 1 million to work with us to find us creative financing. We we working with him for 4 months at which we had finally secured lending. I thought I had made it. Or so we thought. Before the lender moved forward he came to see the property and he just had a bad taste in his mouth. He uped our requirements and the deal would just not financially made sense on our end if something bad happened we'd be screwed. So we it was a let down but like a shoot for the stars land on the moon type situation. We ended up buying one of the properties under contract a 29 unit for 1,025,000.00 my FIRST MILLION DOLLAR DEAL WHOOOO!!!
We now have 51 units together and I still own my original triplex that I live in and rent the other 2 units out so I now have 54 units under management. It is amazing to see how far we and I have come since joining biggerpockets although I have been MIA for years on here. My goals now are to focus on continuing to grow as fast and large as possible through any means necessary.
Fantastic story! Congrats!
Wow, that's incredible.
So how is your relationship with your mothers boyfriend now?
Also, can you explain what your partnership details looked like on the first deal? So you agreed to pay 20, him 80. How did you split profits? How was this made official? (I'm new to REI / even newer to partnerships).
Wow what Ana maxing story of perseverance , I commend you my friend
Great success story. Again, tons of learning, failing, repeat. I’m glad you stayed persistent with this and went through the hoops to find a way to make it work. Thanks for sharing your story, Skylar. Look forward to hearing more positive news from you.
Great story, I’m at FedEx and currently house hacking while learning as much as possible and looking for my first deal. Thanks for sharing!
Nice work! Bringing the old saying of go big or go home into reality. I hope you continue to find great success.
Amazing story! Good that you stayed persistent through the initial phase.
Can you share what you did to network and find deals?
Hi Skylar, how do you find multi-unit deals net to good return? is there a web site (perhaps via biggerpockets here online?) or network group where i can find them? and what is a good / realistic return in your mind (5%, 10%+) ? It seems to me that all the properties posted online through zillow.com or realtor.com that are multi-family gets bought quickly or the price does not justify the rent!
@Skylar Dejesus very impressive!!! Keep up the good work. Excited to see where you will be in 5-10 years. The ability to leverage and the snow ball effect that comes with owning real estate is amazing!! Keep grinding.
Nice success story, well-deserved. Hope the best for you, your partner, and your future deals.
Great work. Inspiring!
Wow, great story. Thanks for the inspiration!
I just started and can't wait to be where you are at right now. Great success story @Skylar Dejesus . Keep it up!!
@Alice L. , I'm finding the same issue. My husband and I invest in South Florida, and multi families are hard to come by that make financial sense. Obviously, there are other areas where they are more plentiful and priced for cash flow, and maybe Tennessee is one of those places.
Great story @skylar dejesus!
Great job! I hope one day I can be as accomplished as you!
Great story of perseverance and hard work!
Congratulations on your accomplishments! Those are exactly the steps needed to take to build your legacy! Rich Dad Poor Dad was definitely i game changer for me as well when i read it a a few years ago.
@Skylar Dejesus I like your mom's boyfriend!!! Way to go, and now you have a relationship for sure
Great Adventure you did great!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing